Ugi Corporation · NYSE:UGI
Ugi — Q2 2018 Earnings Presentation
30 slides from Ugi's earnings presentation, May 3, 2018
Slide 1: Fiscal Second Quarter Results
1 Fiscal Second Quarter Results May 3, 2018 John L. Walsh President & CEO, UGI Corporation Kirk R. Oliver Chief Financial Officer, UGI Corporation Jerry E. Sheridan President & CEO, AmeriGas Partners
Slide 2: About This Presentation
2 About This Presentation This presentation contains certain forward-looking statements that management believes to be reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’
Slide 3: Second Quarter Recap
3 John L. Walsh President & CEO, UGI Second Quarter Recap
Slide 4: Second Quarter Summary
4 Second Quarter Summary Adjusted EPS is a non-GAAP measure. See Appendix for reconciliation. AmeriGas UGI International Gas Utility Midstream & Marketing Q2 2018 Weather Versus: Prior Year 14.2% colder 6.3% colder 14.3% colder 10.8% colder UGI Corporation | Fiscal 2018 Second Quarter Results Q2 201
Slide 5: Q2 Earnings Recap
5 Q2 Earnings Recap • Tax rate changes in the U.S. and France contributed $0.19, net, to adjusted EPS • Excluding the benefits of tax reform, adjusted EPS was $1.50, a 15% increase over prior year, and a record Q2 result Adjusted EPS is a non-GAAP measure. See Appendix for reconciliation. $1.31 $1.6
Slide 6: Second Quarter Overview
6 Second Quarter Overview UGI Corporation | Fiscal 2018 Second Quarter Results • Working with PennEast property owners and have obtained 97% survey permission in PA and 50% in NJ • LNG investments continued to perform very well as peaking and power generation demand across New England and the Mid-At
Slide 7: Second Quarter Financial Review
7 Second Quarter Financial Review Kirk R. Oliver Chief Financial Officer, UGI
Slide 8: Q2 Adjusted Earnings
8 Q2 2017 Q2 2018 Net income attributable to UGI Corporation (GAAP) $219.9 $276.0 Net losses on commodity derivative instruments1,3 3.1 15.7 Unrealized losses on foreign currency derivative instruments1 0.8 1.3 Integration expenses associated with Finagaz1 4.4 6.8 Loss on extinguishment of debt 1 3.
Slide 9: Q2 Results Recap
9 $1.31 $0.08 $0.03 $0.15 $0.14 ($0.02) $1.69 $0.75 $1.75 Q2 2017 AmeriGas UGI International Midstream & Marketing UGI Utilities Corp & Other Q2 2018 A d ju st ed E P S Q2 Results Recap A return to near normal weather helped support a 29% increase to Adjusted EPS Adjusted EPS is a non-GAAP measure.
Slide 10: Financial Results – AmeriGas
10 Q2 2017 Q2 2018 Adjusted EBITDA $271.2 Retail Margin 45.8 Wholesale and Other Total Margin 3.0 Partnership Operating and Administrative Expenses (11.5) Other Income and Expense, net 1.0 Adjusted EBITDA $309.5 Financial Results – AmeriGas Q2 2017 Q2 2018 colder warmer (13.5)% (12.9)% Weather versu
Slide 11: Financial Results – UGI International
11 Q2 2017 Q2 2018 Income Before Taxes $116.2 Total Margin 60.9 Operating and Administrative Expenses (39.9) Depreciation and Amortization (7.3) Interest Expense (0.4) Other Income and Expense, net (12.0) Income Before Taxes $117.5 Integration Expenses 6.7 11.3 Adjusted Income Before Taxes $122.9 $1
Slide 12: Financial Results – Midstream & Marketing
12 Q2 2017 Q2 2018 Income Before Taxes $ 83.8 Total Margin 32.7 Operating and Administrative Expenses (4.4) Depreciation and Amortization (2.0) Other Income and Expenses, net (2.5) Income Before Taxes $107.6 Financial Results –Midstream & Marketing Q2 2017 Q2 2018 colder warmer (14.2)% Weather versu
Slide 13: Financial Results – Utilities
13 Q2 2017 Q2 2018 Income Before Taxes $106.1 Total Margin 30.4 Operating and Administrative Expenses (8.1) Depreciation and Amortization (3.4) Interest Expense (0.8) Other Income and Expense, net (0.2) Income Before Taxes $124.0 Financial Results – Utilities Q2 2017 Q2 2018 colder warmer (2.2)%(11.
Slide 14: 2013 – 2018 Adjusted EPS Growth
14 2013 – 2018 Adjusted EPS Growth UGI Corporation | Fiscal 2018 Second Quarter Results First Half 2013 First Half 2018 $2.42 $1.60 9% CAGR First Half 2013 and 2018 periods both experienced approximately normal weather 11% CAGR $2.70 $0.28 benefit from tax reform +69% Total +51% Total Adjusted EPS i
Slide 15: AmeriGas Second Quarter Recap
15 A me riGa s AmeriGas Second Quarter Recap Jerry E. Sheridan President & CEO, AmeriGas
Slide 16: AmeriGas Q2 2018 Earnings Recap
16 • Volume up 10% on weather that was 14% colder than prior-year period • Weather was normal, but uneven for the quarter • Unit margins up slightly despite average costs at Mt. Belvieu that were 18% higher than prior year • Propane costs stable throughout the quarter • Operating expenses up 5% due
Slide 17: Growth Initiatives
17 Growth Initiatives Cylinder Exchange • Volume was up 15% vs. Q2 2017 • 6% increase in same store sales National Accounts • Volume was up 18% vs. Q2 2017 due to weather and new customers Acquisitions • Closed an acquisition in April; expected to add 3 million gallons annually • Pipeline remains st
Slide 18: Trade Names and Distribution Update
18 Trade Names and Distribution Update UGI Corporation | Fiscal 2018 Second Quarter Results Heritage Tradenames • Recently completed a review of the operational tradenames acquired with the Heritage acquisition in 2012 • Analysis concluded that the tradenames will have a finite life of 3-5 years and
Slide 19: Conclusion and Q&A
19 Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com Brendan Heck 610-456-6608 heckb@ugicorp.com John L. Walsh President & CEO, UGI Conclusion and Q&A
Slide 20: Key Growth Drivers
20 Key Growth Drivers UGI Corporation | Fiscal 2018 Second Quarter Results Natural Gas Infrastructure • Record natural gas demand in first two weeks of Q2 highlighted the need for additional infrastructure • Peak sendouts were 7-14% above record-level set in Polar Vortex of 2014 • UGI investments to
Slide 21: FY 2018 Guidance Update
21 FY 2018 Guidance Update UGI Corporation | Fiscal 2018 Second Quarter Results Original FY18 Adjusted EPS Guidance (November 9, 2017) Updated FY18 Adjusted EPS Guidance (May 3, 2018) $2.45 – $2.65 $2.70 – $2.80 • Did not reflect impact of tax reform • Includes the benefit of tax reform (other than
Slide 22: Q&A
22 Q&A
Slide 23: ANYONE ARINING
ANYONE ARINING
Slide 24: Non-GAAP Measures Definitions
24 • Management uses "adjusted net income attributable to UGI" and "adjusted diluted earnings per share," both of which are non-GAAP financial measures, when evaluating UGI's overall performance. For the periods presented, adjusted net income attributable to UGI is net income attributable to UGI Cor
Slide 25: UGI Adjusted Net Income and EPS Quarter Ended March 31, 2018
25 UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2018 Second Quarter Results Quarter Ended March 31, 2018 ( Mi l l ions of dol la rs , except per share) Adjusted net income attributable to UGI Corporation: Net income (loss) attributable to UGI Corporation $ 276.0 $ 49.8 $ 77.4 $ 76.6 $ 89
Slide 26: UGI Adjusted Net Income and EPS Quarter Ended March 31, 2017
26 UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2018 Second Quarter Results Quarter Ended March 31, 2017 ( Mi l l ions of dol la rs except per share) Adjusted net income attributable to UGI Corporation: Net income (loss) attributable to UGI Corporation $ 219.9 $ 32.0 $ 79.3 $ 50.2 $ 65.1
Slide 27: 2013 UGI Adjusted Net Income and EPS
27 2013 UGI Adjusted Net Income and EPS UGI Corporation | Fiscal 2018 Second Quarter Results For the Six Months ended March 31, 2013 (Mill ions of dollars, except per share) 2013 Adjusted net income attributable to UGI Corporation: Net income attributable to UGI Corporation 283.2$ Net unrealized gai
Slide 28: EBITDA and Adjusted EBITDA Definitions
28 • The enclosed supplemental information contains a reconciliation of earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA to Net Income. • EBITDA and Adjusted EBITDA are not measures of performance or financial condition under GAAP. Manageme
Slide 29: AmeriGas EBITDA and Adjusted EBITDA
29 AmeriGas EBITDA and Adjusted EBITDA UGI Corporation | Fiscal 2018 Second Quarter Results (Mil l ions of dol lars) EBITDA and Adjusted EBITDA Net income attributable to AmeriGas Partners $ 191.8 $ 135.1 Income tax expense (a) Interest expense Depreciation Amortization EBITDA 278.6 220.7 Add net lo
Slide 30: Investor Relations
30 Investor Relations: Will Ruthrauff 610-456-6571 ruthrauffw@ugicorp.com Brendan Heck 610-456-6608 heckb@ugicorp.com